1. From Dark to Light Skin Color and Wages Among African-Americans Goldsmith, Arthur H., Darrick Hamilton, and William Darity, Jr., Journal of Human Resources, 42(4), pp. 701-738.

2. The Preference for Whiteness Hypothesis Social categorization is a fundamental cognitive process leading to in-groups and out-groups. Out-groups are exposed to prejudice and in-group members receive preferential treatment.

3. In the U.S., whiteness is a defining attribute of the in-group. Possessing characteristics of the white in- group in the form of skin shade may lead to preferential treatment of light-skinned relative to darker-skinned African- Americans. >>> Earnings will be related to the lightness of skin color, not just race.

4. Primary Questions Do light-skinned African-Americans earn more relative to whites than dark- skinned African-Americans? Among African-Americans, are there wage differences by skin shade?

5. Data Multi-City Study of Urban Inequality (MCSUI) Authors’ sample: 948 Black and White Working Men Aged 19-65, 1992-1994 Interviewer/individual race match. Interviewers trained to establish consistency in identifying skin shade. National Survey of Black Americans (NSBA) 331 Black Working Men Aged 19-65, 1978-1979

6. Mean of the Hourly Wage (MCSU) White$15.94 Light Black 14.42 Medium Black 13.23 Dark Black 11.72

7. Dummy Variable Method Traditional Model W = b 1 + b 2 RACE + … RACE = 1 if individual is African-American = 0 if white. b 2 < 0 is evidence of discrimination vs. blacks. b 2 > 0 is evidence of discrimination vs. whites. b 2 = 0 is evidence of no discrimination.

8. “Rainbow” Model W = b 1 + b 2 Light Black + b 3 Medium Black + b 4 Dark Black + … where skin shade variables are dummy variables. b2 < 0, b3 < 0, and b4 < 0 is evidence of discrimination vs. light-skinned, medium dark- skinned, or dark-skinned blacks, respectively. |b2| < |b3| and |b2| < |b4| is evidence that light- skinned blacks face less discrimination than medium dark and dark skinned blacks.

9. Control Variables Human Capital: education, job tenure, disability Workplace Characteristics: union status, firm size, supervise others, work part-time Demographic Characteristics: age, married, number of dependents, foreign resident at 16 years of age Family Characteristics when Young: raised by both parents, mother high school grad, father high school grad

10. Percent of Earnings Less than Whites by Skin Shade 1 All Blacks 15.5 % Results Dummy Variable Method Light Black 7.6 Medium Black 16.6 Dark Black 16.8 1 Controlling for human capital, workplace, and demographic variables.

11. Component due to Component Group Productivity Unexplained All Blacks 10.3811.98 Results Oaxaca Wage Decomposition Technique 1 Light Black -2.52 4.59 Medium Black 10.8513.15 Dark Black 12.1413.73 1 Controlling for human capital, workplace, and demographic variables.

12. Conclusion Skin shade matters. Estimates indicate that light-skinned African-Americans earn more relative to whites than dark-skinned African- Americans. The black-white dichotomy used in labor economics yields misleading results. The theory of the preference for whiteness is consistent with the results.